ASTM E833-02a

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 Building Constructions, and does not necessarily correspond to the terminology used in other areas of accounting and economics.

General Information

• Status: Historical
• Publication Date: 09-Oct-2002
• 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 E833-02 - Standard Terminology of Building Economics
• Effective Date: 10-Oct-2002
• Replaced By: ASTM E833-04 - Standard Terminology of Building Economics
• Effective Date: 01-Oct-2004
• 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: 10-Oct-2002
• Referred By: ASTM E2514-15(2020) - Standard Practice for Presentation Format of Elemental Cost Estimates, Summaries, and Analyses
• Effective Date: 10-Oct-2002
• Referred By: ASTM E2150-17 - Standard Classification for Life-Cycle Environmental Work Elements—Environmental Cost Element Structure
• Effective Date: 10-Oct-2002
• Referred By: ASTM E1946-18(2023) - Standard Practice for Measuring Cost Risk of Buildings and Building Systems and Other Constructed Projects
• Effective Date: 10-Oct-2002
• Referred By: ASTM E2103/E2103M-19 - Standard Classification for Bridge Elements—UNIFORMAT II
• Effective Date: 10-Oct-2002
• Referred By: ASTM E1185-15(2020)e1 - Standard Guide for Selecting Economic Methods for Evaluating Investments in Buildings and Building Systems
• Effective Date: 10-Oct-2002
• Referred By: ASTM E2114-23 - Standard Terminology for Sustainability
• Effective Date: 10-Oct-2002
• Referred By: ASTM E2637-17 - Standard Guide for Utilizing the Environmental Cost Element Structure Presented by Classification <astmref design="E2150"/>
• Effective Date: 10-Oct-2002
• Referred By: ASTM E3372-23 - Standard Guide for Schedule Performance Index, Schedule Beta (β<inf>s</inf >)
• Effective Date: 10-Oct-2002
• Referred By: ASTM E1971-19 - Standard Guide for Stewardship for the Cleaning of Commercial and Institutional Buildings
• Effective Date: 10-Oct-2002
• Referred By: ASTM E2166-16(2023) - Standard Practice for Organizing and Managing Building Data
• Effective Date: 10-Oct-2002
• Referred By: ASTM E1699-14(2020) - Standard Practice for Performing Value Engineering (VE)/Value Analysis (VA) of Projects, Products and Processes
• Effective Date: 10-Oct-2002
• Referred By: ASTM E3130-21 - Standard Guide for Developing Cost-Effective Community Resilience Strategies
• Effective Date: 10-Oct-2002

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
An American National Standard
Designation: E 833 – 02a
Standard Terminology of
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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 (e) 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
Building Constructions, and does not necessarily correspond to
expected costs.
the terminology used in other areas of accounting and econom-
benefit-to-cost ratio (BCR), n—benefits divided by costs,
ics.
where both are discounted to a present value or equivalent
DEFINITIONS
uniform annual value (Syn. benefit-cost ratio).
breakeven analysis, n—a technique for determining that value
adjusted internal rate-of-return (AIRR), n—the compound
of a variable which results in benefits (savings) just equal to
rate of interest that, when used to discount the terminal
costs.
values of costs and benefits of a project over a given study
building decision, n—a decision regarding the design, financ-
period, will make the costs equal the benefits when cash
ing, engineering, construction, management, or operation of
flows are reinvested at a specified rate. (Syn. financial
a building.
management rate of return (FMRR))
building economics, n—the application of economic analysis
allowance, n—in construction design planning and estimating,
to the design, financing, engineering, construction, manage-
an allocation of money that is intended to be spent for a
ment, operation, ownership, or disposition of buildings.
specific purpose.
building system, n—an aggregation or assemblage of items
DISCUSSION—An allowance is used in the absence of precise knowl-
joined in regular interaction or interdependence in buildings
edge, and estimated, to be of one’s knowledge, to ensure a full and
or building construction.
complete estimate. Allowances cover events and activities that are
capital cost, n—the costs of acquiring, substantially improv-
normally directly controllable within a project plan.
ing, expanding, changing the functional use of, or replacing
annual value, n—a uniform annual amount equivalent to the a building or building system.
project costs or benefits taking into account the time value of cash flow, n—the stream of monetary (dollar) values—costs
money throughout the study period (Syn. annual worth, and benefits—resulting from a project investment.
equivalent uniform annual value). certainty equivalent technique, n—a technique used to adjust
annual worth, n—See annual value. economic measures of project worth to reflect risk exposure
annually recurring costs, n—those costs that are incurred in and risk attitude.
a regular pattern each year throughout the study period.
DISCUSSION—Estimated project returns are multiplied by a certainty
base date, n—See base time.
equivalent factor (CEF) to determine the certainty equivalent amount a
base time, n—the date to which all future and past benefits and
decision maker finds equally acceptable to the estimated project
costs are converted when a present value method is used
returns.
(usually the beginning of the study period) (Syn. base date).
code of accounts, n—a hierarchical, company-specific system
baseline plan, n—an established scope, cost, schedule, and
for cost accounting, control, and management.
technical performance plan against which the status of
Comprehensive Environmental Response, Compensation,
and Liability Act (CERCLA), n—also known as “Super-
1
fund,” CERCLA prescribes actions and regulatory require-
This terminology is under the jurisdiction of ASTM Committee E06 on
Performance of Buildings and is the direct responsibility of Subcommittee E06.81 ments for reducing risks to human health and the environ-
on Building Economics.
ment resulting from releases or threatened releases of
Current edition approved Oct. 10, 2002. Published November 2002. Originally
hazardous substances into the environment.
published as E 833 – 81. Last previous edition E 833 – 02.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959, United States.
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E 833 – 02a
constant dollars, n—dollars of uniform purchasing power decontamination, n—the r
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