1、Designation: E833 09aStandard Terminology ofBuilding Economics1This standard is issued under the fixed designation E833; 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 t
2、he 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 ofBuil
3、dings, and it does not necessarily correspond to theterminology used in other areas of accounting and economics.2. Referenced Documents2.1 ASTM Standards:2E2691 Practice for Job Productivity Measurement3. Terminologyadjusted internal rate-of-return (AIRR), nthe compoundrate of interest that, when us
4、ed to discount the terminalvalues of costs and benefits of a project over a given studyperiod, 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 alloca
5、tion of money that is intended to be spent for aspecific purpose.DISCUSSIONAn allowance is 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
6、project plan.annual value, na uniform annual amount equivalent to theproject costs or benefits 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 in
7、curred ina regular pattern each year throughout the study period.base date, nSee base time.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 labor hour budget, na
8、budget of direct labor hourscreated at the onset of a new construction project thatapproximates how many hours will be spent on any definedpart of the project.DISCUSSIONThe budgeted hours are first assigned to the tasks on theproject, and can be summed to determine budgeted hours for any costcode or
9、 for the entire project.baseline plan, nan established scope, cost, schedule, andtechnical performance plan against which the status ofresources and the effort of the overall program or projectactivities are measured, assessed, and controlled.benefit-cost analysis, na method of evaluating projects o
10、rinvestments by comparing the present value or annual valueof expected benefits to the present value or annual value ofexpected costs.benefit-to-cost ratio (BCR), nbenefits divided by costs,where both are discounted to a present value or equivalentuniform annual value (syn. benefit-cost ratio).break
11、 even analysis, na technique for determining thatvalue of a variable which results in benefits (savings) justequal to costs.building decision, na decision regarding the design, financ-ing, engineering, construction, management, or operation ofa building.building economics, nthe application of econom
12、ic analysisto the design, financing, engineering, construction, manage-ment, operation, ownership, or disposition of buildings.building system, nan aggregation or assemblage of itemsjoined in regular interaction or interdependence in buildingsor building construction.capital cost, nthe costs of acqu
13、iring, substantially improv-ing, expanding, changing the functional use of, or replacinga building or building system.cash flow, nthe stream of monetary (dollar) valuescostsand benefitsresulting from a project investment.certainty equivalent technique, na technique used to adjusteconomic measures of
14、 project worth to reflect risk exposureand risk attitude.1This terminology is under the jurisdiction of ASTM Committee E06 onPerformance of Buildings and is the direct responsibility of Subcommittee E06.81on Building Economics.Current edition approved Nov. 1, 2009. Published March 2010. Originallyap
15、proved in 1981. Last previous edition approved in 2009 as E833 09. DOI:10.1520/E0833-09A.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 Summ
16、ary page onthe ASTM website.1Copyright ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959, United States.DISCUSSIONEstimated project returns are multiplied by a certaintyequivalent factor (CEF) to determine the certainty equivalent amount adecision maker finds e
17、qually 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), nalso known as “Super-fund,” CERCLA prescribes actions and regulator
18、y require-ments for reducing risks to human health and the environ-ment resulting from releases or threatened releases ofhazardous substances into the environment.condition indexdescriptive or numeric rating used to repre-sent the “condition” of the rated asset as of a stated point intime.DISCUSSION
19、Examples of condition indices include quantitativescores (scale of 0-100; 0-10; 0-5) based upon statistically sampled dataand associated deficiency curves or defined descriptors (good fair poor).constant dollars, ndollars of uniform purchasing powerexclusive of general inflation or deflation.DISCUSS
20、IONConstant dollars are tied to a reference year.construction contingency, nthe funds added to estimatedand known costs in case of cost overruns during construc-tion.construction documents, nmaterials that convey the physi-cal, aesthetic, technical, performance, and administrativerequirements necess
21、ary to initiate a contract for constructionof the proposed project.contingency, nin construction design planning 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 precisekn
22、owledge, and estimated, to be of ones knowledge, to ensure that afinancial buffer is available within a budget. Contingencies assist inmitigating the effects of unplanned events and other risks that arenormally not directly controllable within a project plan.control signal, nin construction, any ser
23、ies of data pointswhich indicates deviation from the expected job progress inrelation to labor, material, or finance, and indicates anoma-lies on the jobsite to the contractor, project manager, or jobsupervisor.DISCUSSIONIn Practice E2691, a control signal identifies anydeviation from the labor prod
24、uctivity reference point.cost analysis, nsubdividing the project estimate into com-ponent parts to find and compare their relationship topreviously established historical costs.cost effective, adjthe condition whereby the present valuebenefits (savings) of an investment exceeds its present valuecost
25、s.cost limitations, nthe budget boundaries for project ele-ments.cost model, nthe description of the project divided intodiscrete elements showing quantities and unit price for eachelement.cost overruns, nin project design or construction, or both,the unanticipated increase in cost due to factors su
26、ch asunanticipated site conditions, changes in the cost of buildingmaterials, labor, weather, and labor disputes.cost professional, nin project design or construction, orboth, a person engaged in the occupation of understanding,managing or estimating project costs, or a combinationthereof.current do
27、llars, ndollars of purchasing power in whichactual prices are stated, including inflation or deflation.DISCUSSIONIn the absence of inflation or deflation, current dollarsequal constant dollars.current replacement valueengineering estimate of costs (intodays dollars) required to replace a facility at
28、 existing sizeand functional capability using current construction stan-dards.DISCUSSIONIncludes costs for overhead, planning, design, construc-tion, and construction management for the asset being reviewed; doesnot typically include land value or initial site clearing or earthworkcosts. The current
29、 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 should be delineatedbased upon intended use of the term. Typical engineering estimatesinclude costs for materials, equipment, su
30、pplies, 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 and to protect the workers,the public, and the environment.decision analysis, na technique for making economic deci-sions in an u
31、ncertain environment that allows a decisionmaker to include alternative outcomes, risk attitudes, orsubjective impressions about uncertain events in an evalua-tion of investments.decommissioning, ntakes place after deactivation, and in-cludes surveillance and maintenance, decontamination, dis-mantle
32、ment, surveillance and long-term monitoring, or anycombination thereof.decontamination, nthe removal of hazardous or radioactivematerial, or both, from facilities, soils, or equipment topreclude the occurrence of foreseeable adverse health ef-fects.design contingency, nin project design/construction
33、, 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 inverselyproportional to the level of completeness of the designdocumentation.design development, nthe phase of a project consist
34、ing ofdrawings and document preparation to fix and describe thesize and character of the building systems, material, andelements.E833 09a2design program, nthe information detailing project func-tion, purpose, and characteristics inclusive of floor area,functional spaces, equipment, and building syst
35、ems.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 price escalation rate, nthe expected percentdifference between the rate of increase assumed for a givenitem of cost (such
36、 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 of interest reflecting the investorstime value of money, used to determine discount factors forconverting benefits and
37、 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 formula for a given discount rate and interestperiod) that is used to convert costs and benefits occurring atdifferen
38、t 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 considering the timevalue of money.economic evaluation methods, na set of economic analysistechniques that consider all re
39、levant costs associated with aproject investment during its study period, comprising suchtechniques as life-cycle cost, benefit-to-cost ratio, savings-to-investment ratio, internal rate of return, and net savings.economic life, nthat period of time over which an invest-ment is considered to be the l
40、east-cost alternative formeeting a particular objective.element, nin construction planning, design, specification,estimating, and cost analysis, is a significant component partof the whole that performs a specific function, or functions,regardless of design, specification, or construction.DISCUSSION
41、While through analysis, or by direct application, con-struction estimates categorized into elements (functional elements)with allocated costs, may be summarized in an elemental costsummary or elemental cost analysis; elements (functional elements)also provide a framework for consistent preliminary d
42、escription,outline, and performance specification, though all stages of planning,design, construction, and maintenance.elemental cost analysis, nin construction planning, design,specification, estimating, and cost analysis, is a tabulation ofcost categorized by group element, element,orsub-element,
43、or any combination thereof, to which a parameterquantity, or parameter quantities, has, or have, been appliedto derive benchmark figures (rates, ratios, percentages, andso forth).DISCUSSIONElemental cost analyses are valuable tools in planning,estimating, and controlling construction cost through al
44、l stages ofplanning and design. The benchmark figures are primarily derived fromunderlying estimate detail but can, in some circumstances, be useddirectly to approximate estimates for other projects.elemental cost summary, nin construction planning, de-sign, specification, estimating, and cost analy
45、sis, 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 and engineering alterna-tives.equivalent uniform annual value, nSee annual value.ex situ treatment, ntreatment, remediation, o
46、r cleanup ofcontaminated material in a treatment facility at a differentlocation from the contaminated site.field requirements, nin construction design planning andestimating, the nonpermanent portion of construction costthat is essential to permit implementation of the constructionwork in the field
47、.DISCUSSIONUsually relating to permits, insurances, supervision,site set-up, and other requirements that permit the construction process,but excluding such temporary construction work as formwork, bracing,shoring, and other work required to install the permanent constructionwork.financial management
48、 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 limited to, costs ofplanning, design, engineering, site acquisition and prepara-tion, construction, purchase, installation, pr
49、operty taxes andinterest during the construction period, and constructionrelated fees (syn. initial investment cost, initial cost).function, na purpose of the entire project or 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 into categories;(3) the selectio
