ASTM_E_2204_-_15.pdf

Designation:E220415Standard Guide forSummarizing the Economic Impacts of Building-RelatedProjects1This standard is issued under the fixed designation E2204;the number immediately following the designation indicates the year oforiginal adoption or,in the case of revision,the year of last revision.A number in parentheses indicates the year of last reapproval.Asuperscript epsilon()indicates an editorial change since the last revision or reapproval.INTRODUCTIONQuantitative descriptions of economic impacts are a basic requirement in many organizations forevaluating budget requests and the value of a project to the organization.Several measures ofeconomic performance are available for evaluating building-related investments.These measuresinclude,but are not limited to,life-cycle cost,the benefit-to-cost ratio,adjusted internal rate of return,and net benefits.This guide provides a generic format for presenting these economic measures ofbuilding-related investments.1.Scope1.1 This guide covers a generic format for summarizing theeconomic impacts of building-related projects.1.2 The guide provides technical persons,analysts,andresearchers a tool for communicating project impacts in acondensed format to management and non-technical persons.1.3 The generic format described in this guide calls for adescription of the significance of the project,the analysisstrategy,a listing of data and assumptions,and a presentationof the key economic measures of project impact.1.4 This standard does not purport to address all of thesafety concerns,if any,associated with its use.It is theresponsibility of the user of this standard to establish appro-priate safety and health practices and determine the applica-bility of regulatory limitations prior to use.2.Referenced Documents2.1 ASTM Standards:2E631 Terminology of Building ConstructionsE833 Terminology of Building EconomicsE917 Practice for Measuring Life-Cycle Costs of Buildingsand Building SystemsE964 Practice for Measuring Benefit-to-Cost and Savings-to-Investment Ratios for Buildings and Building SystemsE1057 Practice for Measuring Internal Rate of Return andAdjusted Internal Rate of Return for Investments inBuildings and Building SystemsE1074 Practice for Measuring Net Benefits and Net Savingsfor Investments in Buildings and Building SystemsE1121 Practice for Measuring Payback for Investments inBuildings and Building SystemsE1369 Guide for Selecting Techniques for Treating Uncer-tainty and Risk in the Economic Evaluation of Buildingsand Building SystemsE1699 Practice for Performing Value Engineering(VE)/Value Analysis(VA)of Projects,Products and ProcessesE1765 Practice for Applying Analytical Hierarchy Process(AHP)to Multiattribute Decision Analysis of InvestmentsRelated to Buildings and Building SystemsE2506 Guide for Developing a Cost-Effective Risk Mitiga-tion Plan for New and Existing Constructed Facilities2.2 Adjuncts:Discount Factor Tables,Adjunct to Practices E917,E964,E1057,E1074,and E112132.3 ASTM Software Product:MNL 29Software to Support ASTM E1765:StandardPractice forApplyingAnalytical Hierarchy Process(AHP)to Multiattribute Decision Analysis of Investments Re-lated to Buildings and Building Systems23.Terminology3.1 DefinitionsFor definitions of general terms related tobuilding construction used in this guide,refer to Terminology1This guide is under the jurisdiction of ASTM Committee E06 on Performanceof Buildings and is the direct responsibility of Subcommittee E06.81 on BuildingEconomics.Current edition approved Aug.1,2015.Published August 2015.Originallyapproved in 2002.Last previous edition approved in 2011 as E2204 11a.DOI:10.1520/E2204-15.2For referenced ASTM standards,visit the ASTM website,www.astm.org,orcontact ASTM Customer Service at serviceastm.org.For Annual Book of ASTMStandards volume information,refer to the standards Document Summary page onthe ASTM website.3Available from ASTM International Headquarters.Order Adjunct No.ADJE091703.Copyright ASTM International,100 Barr Harbor Drive,PO Box C700,West Conshohocken,PA 19428-2959.United States1 E631;and for general terms related to building economics,refer to Terminology E833.4.Summary of Guide4.1 This guide presents a standard format for presenting theeconomic impacts of building-related projects.It includes theentire range of private and public construction projects,as wellas research related to those projects.4.2 The generic format provided in this guide helps decisionmakers and managers understand the background and objec-tives of a project,the data from which impacts were calculated,how impact was measured,and the significance of the projectsmeasures of worth.5.Significance and Use5.1 This guide reduces the time and effort to communicatethe findings of project impact studies and improves the qualityof communication between those who measure economicimpacts and those who evaluate and interpret them.5.2 Following the guide assures the user that relevanteconomic information on the project is included in