1、Designation: E 833 09Standard Terminology ofBuilding Economics1This standard is issued under the fixed designation E 833; 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
2、the year of last reapproval. Asuperscript epsilon () indicates an editorial change since the last revision or reapproval.1. Scope1.1 This terminology relates to the economic evaluation ofbuilding construction as used in other standards under thejurisdiction of ASTM Committee E06 on Performance ofBui
3、ldings, and it does not necessarily correspond to theterminology used in other areas of accounting and economics.2. Terminologyadjusted internal rate-of-return (AIRR), nthe compoundrate of interest that, when used to discount the terminalvalues of costs and benefits of a project over a given studype
4、riod, will make the costs equal the benefits when cashflows are reinvested at a specified rate (syn. financialmanagement rate of return (FMRR).allowance, nin construction design planning and estimating,an allocation of money that is intended to be spent for aspecific purpose.DISCUSSIONAn allowance i
5、s used in the absence of precise knowl-edge, and estimated, to be of ones knowledge, to ensure a full andcomplete estimate. Allowances cover events and activities that arenormally directly controllable within a project plan.annual value, na uniform annual amount equivalent to theproject costs or ben
6、efits taking into account the time value ofmoney throughout the study period (syn. annual worth,equivalent uniform annual value).annual worth, nSee annual value.annually recurring costs, nthose costs that are incurred ina regular pattern each year throughout the study period.base date, nSee base tim
7、e.base time, nthe date to which all future and past benefits andcosts are converted when a present value method is used(usually the beginning of the study period) (syn. base date).baseline plan, nan established scope, cost, schedule, andtechnical performance plan against which the status ofresources
8、 and the effort of the overall program or projectactivities are measured, assessed, and controlled.benefit-cost analysis, na method of evaluating projects orinvestments by comparing the present value or annual valueof expected benefits to the present value or annual value ofexpected costs.benefit-to
9、-cost ratio (BCR), nbenefits divided by costs,where both are discounted to a present value or equivalentuniform annual value (syn. benefit-cost ratio).break even analysis, na technique for determining thatvalue of a variable which results in benefits (savings) justequal to costs.building decision, n
10、a decision regarding the design, financ-ing, engineering, construction, management, or operation ofa building.building economics, nthe application of economic analysisto the design, financing, engineering, construction, manage-ment, operation, ownership, or disposition of buildings.building system,
11、nan aggregation or assemblage of itemsjoined in regular interaction or interdependence in buildingsor building construction.capital cost, nthe costs of acquiring, substantially improv-ing, expanding, changing the functional use of, or replacinga building or building system.cash flow, nthe stream of
12、monetary (dollar) valuescostsand benefitsresulting from a project investment.certainty equivalent technique, na technique used to adjusteconomic measures of project worth to reflect risk exposureand risk attitude.DISCUSSIONEstimated project returns are multiplied by a certaintyequivalent factor (CEF
13、) to determine the certainty equivalent amount adecision maker finds equally acceptable to the estimated projectreturns.code of accounts, na hierarchical, company-specific systemfor cost accounting, control, and management.Comprehensive Environmental Response, Compensation,and Liability Act (CERCLA)
14、, nalso known as “Super-fund,” CERCLA prescribes actions and regulatory require-ments for reducing risks to human health and the environ-ment resulting from releases or threatened releases ofhazardous substances into the environment.1This terminology is under the jurisdiction of ASTM Committee E06 o
15、nPerformance of Buildings and is the direct responsibility of Subcommittee E06.81on Building Economics.Current edition approved May 1, 2009. Published June 2009. Originallyapproved in 1981. Last previous edition approved in 2008 as E 833 08.1Copyright ASTM International, 100 Barr Harbor Drive, PO Bo
16、x C700, West Conshohocken, PA 19428-2959, United States.condition indexdescriptive or numeric rating used to repre-sent the “condition” of the rated asset as of a stated point intime.DISCUSSIONExamples of condition indices include quantitativescores (scale of 0-100; 0-10; 0-5) based upon statistical
17、ly sampled dataand associated deficiency curves or defined descriptors (good fair poor).constant dollars, ndollars of uniform purchasing powerexclusive of general inflation or deflation.DISCUSSIONConstant dollars are tied to a reference year.construction contingency, nthe funds added to estimatedand
18、 known costs in case of cost overruns during construc-tion.construction documents, nmaterials that convey the physi-cal, aesthetic, technical, performance, and administrativerequirements necessary to initiate a contract for constructionof the proposed project.contingency, nin construction design pla
19、nning and estimat-ing, a sum of money that is provided to cover the occurrenceof unintended departures from the planned scope of work.DISCUSSIONA contingency is used in the absence of preciseknowledge, and estimated, to be of ones knowledge, to ensure that afinancial buffer is available within a bud
20、get. Contingencies assist inmitigating the effects of unplanned events and other risks that arenormally not directly controllable within a project plan.cost analysis, nsubdividing the project estimate into com-ponent parts to find and compare their relationship topreviously established historical co
21、sts.cost effective, adjthe condition whereby the present valuebenefits (savings) of an investment exceeds its present valuecosts.cost limitations, nthe budget boundaries for project ele-ments.cost model, nthe description of the project divided intodiscrete elements showing quantities and unit price
22、for eachelement.cost overruns, nin project design or construction, or both,the unanticipated increase in cost due to factors such asunanticipated site conditions, changes in the cost of buildingmaterials, labor, weather, and labor disputes.cost professional, nin project design or construction, orbot
23、h, a person engaged in the occupation of understanding,managing or estimating project costs, or a combinationthereof.current dollars, ndollars of purchasing power in whichactual prices are stated, including inflation or deflation.DISCUSSIONIn the absence of inflation or deflation, current dollarsequ
24、al constant dollars.current replacement valueengineering estimate of costs (intodays dollars) required to replace a facility at existing sizeand functional capability using current construction stan-dards.DISCUSSIONIncludes costs for overhead, planning, design, construc-tion, and construction manage
25、ment for the asset being reviewed; doesnot typically include land value or initial site clearing or earthworkcosts. The current replacement value for a given building may includecosts applicable to such site improvements as park benches, walkways,parking, service roads, and site utilities and such s
26、hould be delineatedbased upon intended use of the term. Typical engineering estimatesinclude costs for materials, equipment, supplies, and labor.deactivation, nthe process of placing a facility in a safe andstable condition to minimize the long-term cost of a surveil-lance and maintenance program an
27、d to protect the workers,the public, and the environment.decision analysis, na technique for making economic deci-sions in an uncertain environment that allows a decisionmaker to include alternative outcomes, risk attitudes, orsubjective impressions about uncertain events in an evalua-tion of invest
28、ments.decommissioning, ntakes place after deactivation, and in-cludes surveillance and maintenance, decontamination, dis-mantlement, surveillance and long-term monitoring, or anycombination thereof.decontamination, nthe removal of hazardous or radioactivematerial, or both, from facilities, soils, or
29、 equipment topreclude the occurrence of foreseeable adverse health ef-fects.design contingency, nin project design/construction, theamount of funds added to the estimated construction costs tocover unanticipated construction costs due to the incom-pleteness of the design, where the contingency is in
30、verselyproportional to the level of completeness of the designdocumentation.design development, nthe phase of a project consisting ofdrawings and document preparation to fix and describe thesize and character of the building systems, material, andelements.design program, nthe information detailing p
31、roject func-tion, purpose, and characteristics inclusive of floor area,functional spaces, equipment, and building systems.desires, nthe functions that the value analysis team deter-mines to be fulfilled if cost is not a factor, or functions whichdo not otherwise violate a constraint.differential pri
32、ce escalation rate, nthe expected percentdifference between the rate of increase assumed for a givenitem of cost (such as energy), and the general rate ofinflation.discounting, na technique for converting cash flows thatoccur over time to equivalent amounts at a common time.discount rate, nthe rate
33、of interest reflecting the investorstime value of money, used to determine discount factors forconverting benefits and costs occurring at different times toa base time.DISCUSSIONThe discount rate may be expressed as nominal or real.discount factor, na multiplicative number (calculated froma discount
34、 formula for a given discount rate and interestperiod) that is used to convert costs and benefits occurring atdifferent times to a common time.discounted payback (DPB) period, nthe time required forthe cumulative benefits from an investment to pay back theinvestment cost and other accrued costs cons
35、idering the timevalue of money.E833092economic evaluation methods, na set of economic analysistechniques that consider all relevant costs associated with aproject investment during its study period, comprising suchtechniques as life-cycle cost, benefit-to-cost ratio, savings-to-investment ratio, int
36、ernal rate of return, and net savings.economic life, nthat period of time over which an invest-ment is considered to be the least-cost alternative formeeting a particular objective.element, nin construction planning, design, specification,estimating, and cost analysis, is a significant component par
37、tof the whole that performs a specific function, or functions,regardless of design, specification, or construction.DISCUSSIONWhile through analysis, or by direct application, con-struction estimates categorized into elements (functional elements)with allocated costs, may be summarized in an elementa
38、l costsummary or elemental cost analysis; elements (functional elements)also provide a framework for consistent preliminary description,outline, and performance specification, though all stages of planning,design, construction, and maintenance.elemental cost analysis, nin construction planning, desi
39、gn,specification, estimating, and cost analysis, is a tabulation ofcost categorized by group element, element,orsub-element, or any combination thereof, to which a parameterquantity, or parameter quantities, has, or have, been appliedto derive benchmark figures (rates, ratios, percentages, andso for
40、th).DISCUSSIONElemental cost analyses are valuable tools in planning,estimating, and controlling construction cost through all stages ofplanning and design. The benchmark figures are primarily derived fromunderlying estimate detail but can, in some circumstances, be useddirectly to approximate estim
41、ates for other projects.elemental cost summary, nin construction planning, de-sign, specification, estimating, and cost analysis, is a tabu-lation of cost categorized by group element, element,orsub-element.engineering economics, nthe application of economic tech-niques to the evaluation of design a
42、nd engineering alterna-tives.equivalent uniform annual value, nSee annual value.ex situ treatment, ntreatment, remediation, or cleanup ofcontaminated material in a treatment facility at a differentlocation from the contaminated site.field requirements, nin construction design planning andestimating,
43、 the nonpermanent portion of construction costthat is essential to permit implementation of the constructionwork in the field.DISCUSSIONUsually relating to permits, insurances, supervision,site set-up, and other requirements that permit the construction process,but excluding such temporary construct
44、ion work as formwork, bracing,shoring, and other work required to install the permanent constructionwork.financial management rate-of-return (FMRR), nSee ad-justed internal rate-of-return (AIRR).first cost, ncosts incurred in placing a building or buildingsubsystem into service, including, but not l
45、imited to, costs ofplanning, design, engineering, site acquisition and prepara-tion, construction, purchase, installation, property taxes andinterest during the construction period, and constructionrelated fees (syn. initial investment cost, initial cost).function, na purpose of the entire project o
46、r some portionthereof determined by the needs or desires of the user/ownerand expressed in two words, an active verb and a measurablenoun.function analysis, nan examination of the project consistingof (1) the determination of the project functions; (2) theexamination and sorting of these functions i
47、nto categories;(3) the selection of the critical functions and arrangementinto a logical order; and (4) the determination of the projectcost allocated to performing each critical function.function, basic, na function that is necessary to achieve theprimary purpose of a building system or element.fun
48、ctional element, nin construction planning, design,specification, estimating, and cost analysis; see element.future value, nthe value of a benefit or a cost at some pointin the future, considering the time value of money (syn.future worth).future worth, nSee future value.general overhead, nthe fixed
49、 cost associated with operationof the corporate or main office, plant, equipment, and staffingmaintained by a contractor for general business operations.DISCUSSIONGeneral overhead costs may not be specifically appli-cable to a particular job or project.group element, nin construction planning, design, specifi-cation, estimating, and cost analysis, is a component part ofthe whole that includes relevant elements which, as a group,perform major specific function, or functions, regardless ofdesign, specif
