ASTM E1185-07
(Guide)Standard Guide for Selecting Economic Methods for Evaluating Investments in Buildings and Building Systems
Standard Guide for Selecting Economic Methods for Evaluating Investments in Buildings and Building Systems
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.
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Designation:E 1185–07
Standard Guide for
Selecting Economic Methods for Evaluating Investments in
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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 (e) indicates an editorial change since the last revision or reapproval.
1. Scope been published by ASTM. A computer program that produces
economic measures consistent with these practices is avail-
1.1 This guide identifies types of building design and
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able. Discount factor tables have been published byASTM to
building system decisions that require economic analysis and
facilitate computing measures of performance for most of the
recommends ASTM practices, adjuncts, and computer pro-
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practices.
gramsthatmaybeusedtoimplementtheappropriateeconomic
4.2 This guide can be used to: (1) identify types of building
methods for each decision type.
designandsystemdecisionsthatrequireeconomicanalysis;(2)
2. Referenced Documents match the technically appropriate economic methods with the
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decisions; and (3) locate the methods in the ASTM practices
2.1 ASTM Standards:
and adjuncts listed in Section 2.
E 631 Terminology of Building Constructions
4.3 More than one method can be technically appropriate
E 833 Terminology of Building Economics
for many building decisions. Therefore the choice in practice
E 917 PracticeforMeasuringLife-CycleCostsofBuildings
of which technically appropriate economic method to use for
and Building Systems
evaluating a particular building decision will often depend on
E 964 Practice for Measuring Benefit-to-Cost and Savings-
the perspective of the user. Some examples of factors that
to-Investment Ratios for Buildings and Building Systems
influence the user are: (1) ease of applying the methods, (2)
E 1057 Practice for Measuring Internal Rate of Return and
level of familiarity of the user with the methods, (3) preference
Adjusted Internal Rate of Return for Investments in Build-
of the user for different methods, and (4) presence of budget
ings and Building Systems
limitations for the projects.
E 1074 Practice for Measuring Net Benefits and Net Sav-
4.4 Thisguideidentifiessomefeaturesandlimitationsofthe
ings for Investments in Buildings and Building Systems
methods that might influence users’ choices under varying
E 1121 Practice for Measuring Payback for Investments in
conditions.
Buildings and Building Systems
2.2 ASTM Adjuncts:
5. How to Use This Guide
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Discount Factor Tables, Adjunct to Practice E 917
5.1 Table 1 indicates which standard practices (that is,
3. Terminology economic methods) are technically appropriate for the follow-
ing four types of building investment decisions: acceptance/
3.1 Definitions—For definitions of terms used in this guide,
rejection, design, size, and priority.
refer to Terminologies E 631 and E 833.
5.1.1 In the context of this guide, an acceptance/rejection
4. Significance and Use
decision pertains to the cost effectiveness of an individual
building or building system. This type of decision is made
4.1 Standard practices for measuring the economic perfor-
independently of other project evaluations. It focuses on the
mance of investments in buildings and building systems have
merits of a single choice rather than on determining the most
cost-effective design or size.
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This guide is under the jurisdiction of ASTM Committee E06 on Performance
5.1.2 A design decision pertains to choices among compet-
of Buildings and is the direct responsibility of Subcommittee E06.81 on Building
Economics.
ing designs for an individual building or building system,
Current edition approved April 1, 2007. Published April 2007. Originally
where only one design can be chosen.
approved in 1987. Last previous edition E 1185 – 02.
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For referenced ASTM standards, visit the ASTM website, www.astm.org, or
contact ASTM Customer Service at service@astm.org. For Annual Book of ASTM
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Standards volume information, refer to the standard’s Document Summary page on BLCC5, the “NIST Building Life-Cycle Cost Program,” Office of Applied
the ASTM website. Economics, Building and Fire Research Laboratory, National Institute of Standards
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Available from ASTM International Headquarters. Order Adjunct No. and Technology. Available at http://www.eren.doe.gov/femp. Click on “Technical
ADJE091703. Assistance” first, then on “Life-Cycle Cost Analysis.”
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959, United States.
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E1185–07
A
TABLE 1 Standard Practices For Making Building Decisions
same decision (with the exception of payback),
...
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