ASTM E2204-15

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

SIGNIFICANCE AND USE
5.1 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.  
5.2 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.  
5.3 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.  
5.4 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.  
5.5 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.  
5.6 Use the guide to summarize the results of economic impact studies that use Practices E917 (Life-Cycle Costs), E964 (Benefit-to-Cost and Savings-to-Investment Ratios), E1057 (Internal Rate of Return and Adjusted Internal Rate of Return), E1074 (Net Benefits and Net Savings), E1121 (Payback), E1699 (Value Engineering/Value Analysis), and E1765 (Analytical Hierarchy Process for Multiattribute Decision Analysis).  
5.7 Use this guide in conjunction with Guide E1369 to summarize the results of economic impact studies involving natural or man-made hazards, or both, that occur infrequently but have significant consequences.  
5.8 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: Ex...
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.  
1.4 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility of the user of this standard to establish appropriate safety and health practices and determine the applicability of regulatory limitations prior to use.

General Information

• Status: Historical
• Publication Date: 31-Jul-2015
• 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 E2204-11a - Standard Guide for Summarizing the Economic Impacts of Building-Related Projects
• Effective Date: 01-Aug-2015
• 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-Aug-2015
• 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-Aug-2015
• 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-Aug-2015
• Referred By: ASTM E3130-21 - Standard Guide for Developing Cost-Effective Community Resilience Strategies
• Effective Date: 01-Aug-2015
• 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-Aug-2015
• 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-Aug-2015
• Referred By: ASTM E917-17(2023) - Standard Practice for Measuring Life-Cycle Costs of Buildings and Building Systems
• Effective Date: 01-Aug-2015

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: E2204 − 15
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.
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 E964 Practice for Measuring Benefit-to-Cost and Savings-
to-Investment Ratios for Buildings and Building Systems
1.1 This guide covers a generic format for summarizing the
E1057 Practice for Measuring Internal Rate of Return and
economic impacts of building-related projects.
Adjusted Internal Rate of Return for Investments in
1.2 The guide provides technical persons, analysts, and
Buildings and Building Systems
researchers a tool for communicating project impacts in a
E1074 Practice for Measuring Net Benefits and Net Savings
condensed format to management and non-technical persons.
for Investments in Buildings and Building Systems
1.3 The generic format described in this guide calls for a E1121 Practice for Measuring Payback for Investments in
Buildings and Building Systems
description of the significance of the project, the analysis
strategy, a listing of data and assumptions, and a presentation E1369 Guide for Selecting Techniques for Treating Uncer-
tainty and Risk in the Economic Evaluation of Buildings
of the key economic measures of project impact.
and Building Systems
1.4 This standard does not purport to address all of the
E1699 Practice for Performing Value Engineering (VE)/
safety concerns, if any, associated with its use. It is the
Value Analysis (VA) of Projects, Products and Processes
responsibility of the user of this standard to establish appro-
E1765 Practice for Applying Analytical Hierarchy Process
priate safety and health practices and determine the applica-
(AHP) to Multiattribute DecisionAnalysis of Investments
bility of regulatory limitations prior to use.
Related to Buildings and Building Systems
E2506 Guide for Developing a Cost-Effective Risk Mitiga-
2. Referenced Documents
tion Plan for New and Existing Constructed Facilities
2
2.1 ASTM Standards:
2.2 Adjuncts:
E631 Terminology of Building Constructions
Discount Factor Tables, Adjunct to Practices E917, E964,
3
E833 Terminology of Building Economics
E1057, E1074, and E1121
E917 Practice for Measuring Life-Cycle Costs of Buildings
2.3 ASTM Software Product:
and Building Systems
MNL 29 Software to Support ASTM E1765: Standard
PracticeforApplyingAnalyticalHierarchyProcess(AHP)
to Multiattribute Decision Analysis of Investments Re-
2
1
This guide is under the jurisdiction of ASTM Committee E06 on Performance
lated to Buildings and Building Systems
of Buildings and is the direct responsibility of Subcommittee E06.81 on Building
Economics.
3. Terminology
Current edition approved Aug. 1, 2015. Published August 2015. Originally
3.1 Definitions—For definitions of general terms related to
approved in 2002. Last previous edition approved in 2011 as E2204 – 11a. DOI:
10.1520/E2204-15.
building construction used in this guide, refer to Terminology
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

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E2204 − 15
E631; and for general terms related to building economics, 5.9 Use the guide to summarize the impacts of projects that
refer to Terminology E833. affect parties that are internal to the organization preparing the
summary as well as projects that affect not only the organiza-
4. Summary of Guide tion preparing the summary but also groups external to the
organization.
4.1 This guide presents a standard format for presenting the
NOTE 2—Projects whose impacts are internal only correspond to
economic impacts of building-related projects. It includes the
si
...

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: E2204 − 11a E2204 − 15
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.
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.
1.4 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility
of the user of this standard to establish appropriate safety and health practices and determine the applicability of regulatory
limitations prior to use.
2. Referenced Documents
2
2.1 ASTM Standards:
E631 Terminology of Building Constructions
E833 Terminology of Building Economics
E917 Practice for Measuring Life-Cycle Costs of Buildings and Building Systems
E964 Practice for Measuring Benefit-to-Cost and Savings-to-Investment Ratios for Buildings and Building Systems
E1057 Practice for Measuring Internal Rate of Return and Adjusted Internal Rate of Return for Investments in Buildings and
Building Systems
E1074 Practice for Measuring Net Benefits and Net Savings for Investments in Buildings and Building Systems
E1121 Practice for Measuring Payback for Investments in Buildings and Building Systems
E1369 Guide for Selecting Techniques for Treating Uncertainty and Risk in the Economic Evaluation of Buildings and Building
Systems
E1699 Practice for Performing Value Engineering (VE)/Value Analysis (VA) of Projects, Products and Processes
E1765 Practice for Applying Analytical Hierarchy Process (AHP) to Multiattribute Decision Analysis of Investments Related to
Buildings and Building Systems
E2506 Guide for Developing a Cost-Effective Risk Mitigation Plan for New and Existing Constructed Facilities
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 Oct. 1, 2011Aug. 1, 2015. Published October 2011August 2015. Originally approved in 2002. Last previous edition approved in 2011 as
E2204 – 11.E2204 – 11a. DOI: 10.1520/E2204-11A.10.1520/E2204-15.
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.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959. United States
1

---------------------- Page: 1 ----------------------
E2204 − 15
2.2 Adjuncts:
3
Discount Factor Tables, Adjunct to Practices E917, E964, E1057, E1074, and E1121
2.3 ASTM Software Product:
MNL 29 Software to Support ASTM E1765: 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 general terms related to building construction used in this guide, refer to
TerminologiesTerminology E631 and ; and for general terms related to building economics, refer to Terminology E833.
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 construct
...