ASTM E917-15

Standard Practice for Measuring Life-Cycle Costs of Buildings and Building Systems

SIGNIFICANCE AND USE
5.1 LCC analysis is an economic method for evaluating a project or project alternatives over a designated study period. The method entails computing the LCC for alternative building designs or system specifications having the same purpose and then comparing them to determine which has the lowest LCC over the study period.  
5.2 The LCC method is particularly suitable for determining whether the higher initial cost of a building or building system is economically justified by reductions in future costs (for example, operating, maintenance, repair, or replacement costs) when compared with an alternative that has a lower initial cost but higher future costs. If a building design or system specification has both a lower initial cost and lower future costs relative to an alternative, an LCC analysis is not needed to show that the former is the economically preferable choice.  
5.3 If an investment project is not essential to the building operation (for example, replacement of existing single-pane windows with new double-pane windows), the project must be compared against the “do nothing” alternative (that is, keeping the single pane windows) in order to determine if it is cost effective. Typically the “do nothing” alternative entails no initial investment cost but has higher future costs than the proposed project.
SCOPE
1.1 This practice establishes a procedure for evaluating the life-cycle cost (LCC) of a building or building system and comparing the LCCs of alternative building designs or systems that satisfy the same functional requirements.  
1.2 The LCC method measures, in present-value or annual-value terms, the sum of all relevant costs associated with owning and operating a building or building system over a specified time period.  
1.3 The basic premise of the LCC method is that to an investor or decision maker all costs arising from an investment decision are potentially important to that decision, including future as well as present costs. Applied to buildings or building systems, the LCC encompasses all relevant costs over a designated study period, including the costs of designing, purchasing/leasing, constructing/installing, operating, maintaining, repairing, replacing, and disposing of a particular building design or system.  
1.4 The values stated in inch-pound units are to be regarded as standard. The values given in parentheses are mathematical conversions to SI units that are provided for information only and are not considered standard.

General Information

• Status: Historical
• Publication Date: 30-Sep-2015
• ICS: 91.010.20 - Contractual aspects
• Technical Committee: E06 - Performance of Buildings
• Drafting Committee: E06.81 - Building Economics

Relations

• Replaces: ASTM E917-13 - Standard Practice for Measuring Life-Cycle Costs of Buildings and Building Systems
• Effective Date: 01-Oct-2015
• Replaced By: ASTM E917-17 - Standard Practice for Measuring Life-Cycle Costs of Buildings and Building Systems
• Effective Date: 01-Sep-2017
• Referred By: ASTM E1185-15(2020)e1 - Standard Guide for Selecting Economic Methods for Evaluating Investments in Buildings and Building Systems
• Effective Date: 01-Oct-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-Oct-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-Oct-2015
• Referred By: ASTM E1765-16(2023) - Standard Practice for Applying Analytical Hierarchy Process (AHP) to Multiattribute Decision Analysis of Investments Related to Projects, Products, and Processes
• Effective Date: 01-Oct-2015
• Referred By: ASTM E1699-14(2020) - Standard Practice for Performing Value Engineering (VE)/Value Analysis (VA) of Projects, Products and Processes
• Effective Date: 01-Oct-2015
• Referred By: ASTM E3130-21 - Standard Guide for Developing Cost-Effective Community Resilience Strategies
• Effective Date: 01-Oct-2015
• Referred By: ASTM E2150-17 - Standard Classification for Life-Cycle Environmental Work Elements—Environmental Cost Element Structure
• Effective Date: 01-Oct-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-Oct-2015
• Referred By: ASTM E2204-15(2020)e1 - Standard Guide for Summarizing the Economic Impacts of Building-Related Projects
• Effective Date: 01-Oct-2015
• Referred By: ASTM E2166-16(2023) - Standard Practice for Organizing and Managing Building Data
• Effective Date: 01-Oct-2015
• Referred By: ASTM E1557-09(2020)e1 - Standard Classification for Building Elements and Related Sitework—UNIFORMAT II
• Effective Date: 01-Oct-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-Oct-2015
• Referred By: ASTM E2252-22 - Standard Practice for Selection of Lead Hazard Reduction Methods for Identified Risks in Residential Housing or Child Occupied Facilities
• Effective Date: 01-Oct-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: E917 − 15
Standard Practice for
Measuring Life-Cycle Costs of Buildings and Building
1
Systems
This standard is issued under the fixed designation E917; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision.Anumber in parentheses indicates the year of last reapproval.A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.
INTRODUCTION
Several methods of economic evaluation are available to measure the economic performance of a
building or building system over a specified time period. These methods include, but are not limited
to, life-cycle cost (LCC) analysis, the benefit-to-cost ratio, internal rate of return, net benefits,
payback, multiattribute decision analysis, risk analysis, and related measures (see Practices E964,
E1057,E1074,E1121,E1765,andE1946).Thesemethodsdifferintheirmeasureand,tosomeextent,
in their applicability to particular types of problems. Guide E1185 directs you to the appropriate
method for a particular economic problem. One of these methods, life-cycle cost (LCC) analysis, is
the subject of this practice. The LCC method sums, in either present-value or annual-value terms, all
relevant costs associated with a building or building system over a specified time period.Alternative
(mutually exclusive) designs or systems for a given functional requirement can be compared on the
basis of their LCCs to determine which is the least-cost means of satisfying that requirement over a
specified study period.
1. Scope conversions to SI units that are provided for information only
and are not considered standard.
1.1 This practice establishes a procedure for evaluating the
life-cycle cost (LCC) of a building or building system and
2. Referenced Documents
comparingtheLCCsofalternativebuildingdesignsorsystems
2
2.1 ASTM Standards:
that satisfy the same functional requirements.
E631Terminology of Building Constructions
1.2 The LCC method measures, in present-value or annual-
E833Terminology of Building Economics
value terms, the sum of all relevant costs associated with
E964Practice for Measuring Benefit-to-Cost and Savings-
owning and operating a building or building system over a
to-Investment Ratios for Buildings and Building Systems
specified time period.
E1057Practice for Measuring Internal Rate of Return and
1.3 The basic premise of the LCC method is that to an Adjusted Internal Rate of Return for Investments in
investorordecisionmakerallcostsarisingfromaninvestment
Buildings and Building Systems
decision are potentially important to that decision, including E1074Practice for Measuring Net Benefits and Net Savings
futureaswellaspresentcosts.Appliedtobuildingsorbuilding
for Investments in Buildings and Building Systems
systems, the LCC encompasses all relevant costs over a E1121Practice for Measuring Payback for Investments in
designated study period, including the costs of designing,
Buildings and Building Systems
purchasing/leasing, constructing/installing, operating,
E1185Guide for Selecting Economic Methods for Evaluat-
maintaining, repairing, replacing, and disposing of a particular
ing Investments in Buildings and Building Systems
building design or system.
E1369Guide for Selecting Techniques for Treating Uncer-
tainty and Risk in the Economic Evaluation of Buildings
1.4 Thevaluesstatedininch-poundunitsaretoberegarded
and Building Systems
as standard. The values given in parentheses are mathematical
E1765Practice for Applying Analytical Hierarchy Process
(AHP) to Multiattribute DecisionAnalysis of Investments
1
This practice is under the jurisdiction of ASTM Committee E06 on Perfor-
mance of Buildings and is the direct responsibility of Subcommittee E06.81 on
2
Building Economics. For referenced ASTM standards, visit the ASTM website, www.astm.org, or
Current edition approved Oct. 1, 2015. Published October 2015. Originally contact ASTM Customer Service at [e-mail]. For Annual Book of ASTM
approved in 1983. Last previous edition approved in 2013 as E917–13. DOI: Standards volume information, refer to the standard’s Document Summary page on
10.1520/E0917-15. the ASTM website.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959. United States
1

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E917 − 15
Related to Buildings and Building Systems 5.3 If an investment project is not essential to the building
E1946Practice for Measuring Cost Risk of Buildings and operation (for example, replacement of existing single-pane
Building Systems and Other Constructed Projects windows with new double-pane windows), the project must be
E2204Guide for Summarizing the Economic Impacts of compared against the “do nothing” alternative (that is, keeping
Bu
...

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: E917 − 13 E917 − 15
Standard Practice for
Measuring Life-Cycle Costs of Buildings and Building
1
Systems
This standard is issued under the fixed designation E917; 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
Several methods of economic evaluation are available to measure the economic performance of a
building or building system over a specified time period. These methods include, but are not limited
to, life-cycle cost (LCC) analysis, the benefit-to-cost ratio, internal rate of return, net benefits,
payback, multiattribute decision analysis, risk analysis, and related measures (see Practices E964,
E1057, E1074, E1121, E1765, and E1946). These methods differ in their measure and, to some extent,
in their applicability to particular types of problems. Guide E1185 directs you to the appropriate
method for a particular economic problem. One of these methods, life-cycle cost (LCC) analysis, is
the subject of this practice. The LCC method sums, in either present-value or annual-value terms, all
relevant costs associated with a building or building system over a specified time period. Alternative
(mutually exclusive) designs or systems for a given functional requirement can be compared on the
basis of their LCCs to determine which is the least-cost means of satisfying that requirement over a
specified study period.
1. Scope
1.1 This practice establishes a procedure for evaluating the life-cycle cost (LCC) of a building or building system and comparing
the LCCs of alternative building designs or systems that satisfy the same functional requirements.
1.2 The LCC method measures, in present-value or annual-value terms, the sum of all relevant costs associated with owning
and operating a building or building system over a specified time period.
1.3 The basic premise of the LCC method is that to an investor or decision maker all costs arising from an investment decision
are potentially important to that decision, including future as well as present costs. Applied to buildings or building systems, the
LCC encompasses all relevant costs over a designated study period, including the costs of designing, purchasing/leasing,
constructing/installing, operating, maintaining, repairing, replacing, and disposing of a particular building design or system.
1.4 The values stated in inch-pound units are to be regarded as standard. The values given in parentheses are mathematical
conversions to SI units that are provided for information only and are not considered standard.
2. Referenced Documents
2
2.1 ASTM Standards:
E631 Terminology of Building Constructions
E833 Terminology of Building Economics
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
1
This practice 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 Sept. 1, 2013Oct. 1, 2015. Published September 2013October 2015. Originally approved in 1983. Last previous edition approved in 20102013
as E917 – 05 (2010).E917 – 13. DOI: 10.1520/E0917-13.10.1520/E0917-15.
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 ----------------------
E917 − 15
E1185 Guide for Selecting Economic Methods for Evaluating 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
E1765 Practice for Applying Analytical Hierarchy Process (AHP) to Multiattribute Decision Analysis of Investments Related to
Buildings and Build
...