ASTM E1185-02

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.

General Information

• Status: Historical
• Publication Date: 09-Oct-2002
• ICS: 91.010.20 - Contractual aspects
• Technical Committee: E06 - Performance of Buildings
• Drafting Committee: E06.81 - Building Economics

Relations

• Replaces: ASTM E1185-93(1998)e1 - Standard Guide for Selecting Economic Methods for Evaluating Investments in Buildings and Building Systems
• Effective Date: 10-Oct-2002
• Replaced By: ASTM E1185-07 - Standard Guide for Selecting Economic Methods for Evaluating Investments in Buildings and Building Systems
• Effective Date: 01-Apr-2007
• Referred By: ASTM E2103/E2103M-19 - Standard Classification for Bridge Elements—UNIFORMAT II
• Effective Date: 10-Oct-2002
• 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: 10-Oct-2002
• Referred By: ASTM E1121-15(2020)e1 - Standard Practice for Measuring Payback for Investments in Buildings and Building Systems
• Effective Date: 10-Oct-2002
• Referred By: ASTM E3130-21 - Standard Guide for Developing Cost-Effective Community Resilience Strategies
• Effective Date: 10-Oct-2002
• Referred By: ASTM E1557-09(2020)e1 - Standard Classification for Building Elements and Related Sitework—UNIFORMAT II
• Effective Date: 10-Oct-2002
• Referred By: ASTM E3008/E3008M-16(2023) - Standard Classification for Transportation Surface Elements—UNIFORMAT II
• Effective Date: 10-Oct-2002
• 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: 10-Oct-2002
• 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: 10-Oct-2002
• 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: 10-Oct-2002
• Referred By: ASTM E917-17(2023) - Standard Practice for Measuring Life-Cycle Costs of Buildings and Building Systems
• Effective Date: 10-Oct-2002
• 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

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:E 1185–02
Standard Guide for
Selecting Economic Methods for Evaluating Investments in
1
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.
4
1. Scope able. Discount factor tables have been published byASTM to
facilitate computing measures of performance for most of the
1.1 This guide identifies types of building design and
3
practices.
building system decisions that require economic analysis and
4.2 This guide can be used to: (1) identify types of building
recommends ASTM practices, adjuncts, and computer pro-
designandsystemdecisionsthatrequireeconomicanalysis;(2)
gramsthatmaybeusedtoimplementtheappropriateeconomic
match the technically appropriate economic methods with the
methods for each decision type.
decisions; and (3) locate the methods in the ASTM practices
2. Referenced Documents and adjuncts listed in Section 2.
4.3 More than one method can be technically appropriate
2.1 ASTM Standards:
2
for many building decisions. Therefore the choice in practice
E 833 Terminology of Building Economics
of which technically appropriate economic method to use for
E 917 PracticeforMeasuringLife-CycleCostsofBuildings
2
evaluating a particular building decision will often depend on
and Building Systems
the perspective of the user. Some examples of factors that
E 964 Practice for Measuring Benefit-to-Cost and Savings-
2
influence the user are: (1) ease of applying the methods, (2)
to-Investment Ratios for Buildings and Building Systems
level of familiarity of the user with the methods, (3) preference
E 1057 Practice for Measuring Internal Rate of Return and
of the user for different methods, and (4) presence of budget
Adjusted Internal Rate of Return for Investments in Build-
2
limitations for the projects.
ings and Building Systems
4.4 Thisguideidentifiessomefeaturesandlimitationsofthe
E 1074 Practice for Measuring Net Benefits for Investments
2
methods that might influence users’ choices under varying
in Buildings and Building Systems
conditions.
E 1121 Practice for Measuring Payback for Investments in
2
Buildings and Building Systems
5. How to Use This Guide
2.2 ASTM Adjuncts:
3
5.1 Table 1 indicates which standard practices (that is,
Discount Factor Tables, Adjunct to Practice E 917
economic methods) are technically appropriate for the follow-
3. Terminology
ing four types of building investment decisions: acceptance/
rejection, design, size, and priority.
3.1 Definitions—For definitions of terms used in this guide,
5.1.1 In the context of this guide, an acceptance/rejection
refer to Terminology E 833.
decision pertains to the cost effectiveness of an individual
4. Significance and Use
building or building system. This type of decision is made
independently of other project evaluations. It focuses on the
4.1 Standard practices for measuring the economic perfor-
merits of a single choice rather than on determining the most
mance of investments in buildings and building systems have
cost-effective design or size.
been published by ASTM. A computer program that produces
5.1.2 A design decision pertains to choices among compet-
economic measures consistent with these practices is avail-
ing designs for an individual building or building system,
where only one design can be chosen.
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.
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Current edition approved Oct. 10, 2002. Published November 2002. Originally BLCC5, the “NIST Building Life-Cycle Cost Program,” Office of Applied
e1
published as E 1185 – 87. Last previous edition E 1185 – 93 (1998) . Economics, Building and Fire Research Laboratory, National Institute of Standards
2
Annual Book of ASTM Standards, Vol 04.11. and Technology. Available at http://www.eren.doe.gov/femp. Click on “Technical
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Available from ASTM Headquarters. Order 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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E1185–02
A
TABLE 1 Standard Practices For Making Building Decisions
same decision (with the exception of payback), there are likely
Applicable Standards to be special considerations that make one or more methods
Type of
preferred over the others. Examine the special considerations
BCR
Building
LCC IRR NB PB
(SIR)
Decision listed in Table 3 before making a final choice of methods.
(E
...