ASTM E833-09a

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

General Information

• Status: Historical
• Publication Date: 31-Oct-2009
• 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 E833-09 - Standard Terminology of Building Economics
• Effective Date: 01-Nov-2009
• Replaced By: ASTM E833-12 - Standard Terminology of Building Economics
• Effective Date: 01-May-2012
• Referred By: ASTM E2150-17 - Standard Classification for Life-Cycle Environmental Work Elements—Environmental Cost Element Structure
• Effective Date: 01-Nov-2009
• Referred By: ASTM E2103/E2103M-19 - Standard Classification for Bridge Elements—UNIFORMAT II
• Effective Date: 01-Nov-2009
• Referred By: ASTM D6026-21 - Standard Practice for Using Significant Digits and Data Records in Geotechnical Data
• Effective Date: 01-Nov-2009
• Referred By: ASTM E1480-92(2022) - Standard Terminology of Facility Management (Building-Related)
• Effective Date: 01-Nov-2009
• Referred By: ASTM E3372-23 - Standard Guide for Schedule Performance Index, Schedule Beta (β<inf>s</inf >)
• Effective Date: 01-Nov-2009
• Referred By: ASTM D1356-20a - Standard Terminology Relating to Sampling and Analysis of Atmospheres
• Effective Date: 01-Nov-2009
• 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-Nov-2009
• Referred By: ASTM E2013-20 - Standard Practice for Developing Functions, Constructing FAST Diagrams, and Performing Function Analysis During Value Engineering (VE)/Value Analysis (VA) Study
• Effective Date: 01-Nov-2009
• Referred By: ASTM E2691-20 - Standard Practice for Job Productivity Measurement
• Effective Date: 01-Nov-2009
• Referred By: ASTM E1557-09(2020)e1 - Standard Classification for Building Elements and Related Sitework&#x2014;UNIFORMAT II
• Effective Date: 01-Nov-2009
• Referred By: ASTM E3200-21 - Standard Guide for Investment Analysis in Environmentally Sustainable Manufacturing
• Effective Date: 01-Nov-2009
• 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-Nov-2009
• Referred By: ASTM E2514-15(2020) - Standard Practice for Presentation Format of Elemental Cost Estimates, Summaries, and Analyses
• Effective Date: 01-Nov-2009

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:E833–09a
Standard Terminology of
1
Building Economics
This standard is issued under the fixed designation E833; 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.
1. Scope base time, n—thedatetowhichallfutureandpastbenefitsand
costs are converted when a present value method is used
1.1 This terminology relates to the economic evaluation of
(usually the beginning of the study period) (syn. base date).
building construction as used in other standards under the
baseline laborhourbudget, n—a budget of direct labor hours
jurisdiction of ASTM Committee E06 on Performance of
created at the onset of a new construction project that
Buildings, and it does not necessarily correspond to the
approximates how many hours will be spent on any defined
terminology used in other areas of accounting and economics.
part of the project.
2. Referenced Documents
DISCUSSION—Thebudgetedhoursarefirstassignedtothetasksonthe
2
2.1 ASTM Standards:
project, and can be summed to determine budgeted hours for any cost
code or for the entire project.
E2691 Practice for Job Productivity Measurement
baseline plan, n—an established scope, cost, schedule, and
3. Terminology
technical performance plan against which the status of
adjusted internal rate-of-return (AIRR), n—the compound
resources and the effort of the overall program or project
rate of interest that, when used to discount the terminal
activities are measured, assessed, and controlled.
values of costs and benefits of a project over a given study
benefit-cost analysis, n—a method of evaluating projects or
period, will make the costs equal the benefits when cash
investments by comparing the present value or annual value
flows are reinvested at a specified rate (syn. financial
of expected benefits to the present value or annual value of
management rate of return (FMRR)).
expected costs.
allowance, n—in construction design planning and estimating,
benefit-to-cost ratio (BCR), n—benefits divided by costs,
an allocation of money that is intended to be spent for a
where both are discounted to a present value or equivalent
specific purpose.
uniform annual value (syn. benefit-cost ratio).
break even analysis, n—a technique for determining that
DISCUSSION—An allowance is used in the absence of precise knowl-
value of a variable which results in benefits (savings) just
edge, and estimated, to be of one’s knowledge, to ensure a full and
complete estimate. Allowances cover events and activities that are equal to costs.
normally directly controllable within a project plan.
building decision, n—a decision regarding the design, financ-
ing, engineering, construction, management, or operation of
annual value, n—a uniform annual amount equivalent to the
a building.
project costs or benefits taking into account the time value of
building economics, n—the application of economic analysis
money throughout the study period (syn. annual worth,
to the design, financing, engineering, construction, manage-
equivalent uniform annual value).
ment, operation, ownership, or disposition of buildings.
annual worth, n—See annual value.
building system, n—an aggregation or assemblage of items
annually recurring costs, n—those costs that are incurred in
joined in regular interaction or interdependence in buildings
a regular pattern each year throughout the study period.
or building construction.
base date, n—See base time.
capital cost, n—the costs of acquiring, substantially improv-
ing, expanding, changing the functional use of, or replacing
1
This terminology is under the jurisdiction of ASTM Committee E06 on
a building or building system.
Performance of Buildings and is the direct responsibility of Subcommittee E06.81
cash flow, n—the stream of monetary (dollar) values—costs
on Building Economics.
and benefits—resulting from a project investment.
Current edition approved Nov. 1, 2009. Published March 2010. Originally
approved in 1981. Last previous edition approved in 2009 as E833 – 09. DOI:
certainty equivalent technique, n—a technique used to adjust
10.1520/E0833-09A.
economic measures of project worth to reflect risk exposure
2
For referenced ASTM standards, visit the ASTM website, www.astm.org, or
and risk attitude.
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

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E833–09a
DISCUSSION—Estimated project returns are multi
...

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:E833–09 Designation: E833 – 09a
Standard Terminology of
1
Building Economics
This standard is issued under the fixed designation E833; 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.
1. Scope
1.1 Thisterminologyrelatestotheeconomicevaluationofbuildingconstructionasusedinotherstandardsunderthejurisdiction
of ASTM Committee E06 on Performance of Buildings, and it does not necessarily correspond to the terminology used in other
areas of accounting and economics.
2. Referenced Documents
2
2.1 ASTM Standards:
E2691 Practice for Job Productivity Measurement
3. Terminology
adjusted internal rate-of-return (AIRR), n—the compound rate of interest that, when used to discount the terminal values of
costs and benefits of a project over a given study period, will make the costs equal the benefits when cash flows are reinvested
at a specified rate (syn. financial management rate of return (FMRR)).
allowance, n—in construction design planning and estimating, an allocation of money that is intended to be spent for a specific
purpose.
DISCUSSION—An allowance is used in the absence of precise knowledge, and estimated, to be of one’s knowledge, to ensure a full and complete
estimate. Allowances cover events and activities that are normally directly controllable within a project plan.
annual value, n—a uniform annual amount equivalent to the project costs or benefits taking into account the time value of money
throughout the study period (syn. annual worth, equivalent uniform annual value).
annual worth, n—See annual value.
annually recurring costs, n—those costs that are incurred in a regular pattern each year throughout the study period.
base date, n—See base time.
base time, n—the date to which all future and past benefits and costs are converted when a present value method is used (usually
the beginning of the study period) (syn. base date).
baseline laborhourbudget, n—a budget of direct labor hours created at the onset of a new construction project that approximates
how many hours will be spent on any defined part of the project.
DISCUSSION—The budgeted hours are first assigned to the tasks on the project, and can be summed to determine budgeted hours for any cost code
or for the entire project.
baseline plan, n—an established scope, cost, schedule, and technical performance plan against which the status of resources and
the effort of the overall program or project activities are measured, assessed, and controlled.
benefit-cost analysis, n—a method of evaluating projects or investments by comparing the present value or annual value of
expected benefits to the present value or annual value of expected costs.
benefit-to-cost ratio (BCR), n—benefits divided by costs, where both are discounted to a present value or equivalent uniform
annual value (syn. benefit-cost ratio).
break even analysis, n—a technique for determining that value of a variable which results in benefits (savings) just equal to costs.
building decision, n—a decision regarding the design, financing, engineering, construction, management, or operation of a
building.
building economics, n—the application of economic analysis to the design, financing, engineering, construction, management,
1
This terminology 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 MayNov. 1, 2009. Published June 2009.March 2010. Originally approved in 1981. Last previous edition approved in 20082009 as E833 – 089.
DOI: 10.1520/E0833-09A.
2
For referencedASTM standards, visit theASTM website, www.astm.org, or contactASTM 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 ----------------------
E833 – 09a
operation, ownership, or disposition of buildings.
building system, n—an aggregation or assemblage of items joined in regular interaction or interdependence in buildings or
building construction.
capital cost, n—the costs of acquiring, substantially improving, expanding, changing the functional use of, or replacing a buildin
...