1、Designation:E83309a Designation: E833 12Standard 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 pare
2、ntheses indicates 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 of building construction as used in other standards under the jurisdictionof ASTM Committee E06 o
3、n Performance of Buildings, and it does not necessarily correspond to the terminology used in otherareas of accounting and economics.2. Referenced Documents2.1 ASTM Standards:2E2691 Practice for Job Productivity Measurement3. Terminologyadjusted internal rate-of-return (AIRR), nthe compound rate of
4、interest that, when used to discount the terminal values ofcosts and benefits of a project over a given study period, will make the costs equal the benefits when cash flows are reinvestedat a specified rate (syn. financial management rate of return (FMRR).allowance, nin construction design planning
5、and estimating, an allocation of money that is intended to be spent for a specificpurpose.DISCUSSIONAn allowance is used in the absence of precise knowledge, and estimated, to be of ones knowledge, to ensure a full and completeestimate. Allowances cover events and activities that are normally direct
6、ly controllable within a project plan.annual value, na uniform annual amount equivalent to the project costs or benefits taking into account the time value of moneythroughout the study period (syn. annual worth, equivalent uniform annual value).annual worth, nSee annual value.annually recurring cost
7、s, nthose costs that are incurred in a regular pattern each year throughout the study period.base date, nSee base time.base time, nthe date to which all future and past benefits and costs are converted when a present value method is used (usuallythe beginning of the study period) (syn. base date).ba
8、seline labor hour budget, na budget of direct labor hours created at the onset of a new construction project that approximateshow many hours will be spent on any defined part of the project.DISCUSSIONThe budgeted hours are first assigned to the tasks on the project, and can be summed to determine bu
9、dgeted hours for any cost codeor for the entire project.baseline plan, nan established scope, cost, schedule, and technical performance plan against which the status of resources andthe effort of the overall program or project activities are measured, assessed, and controlled.benefit-cost analysis,
10、na method of evaluating projects or investments by comparing the present value or annual value ofexpected benefits to the present value or annual value of expected costs.benefit-to-cost ratio (BCR), nbenefits divided by costs, where both are discounted to a present value or equivalent uniformannual
11、value (syn. benefit-cost ratio).break even analysis, na technique for determining that value of a variable which results in benefits (savings) just equal to costs.building decision, na decision regarding the design, financing, engineering, construction, management, or operation of abuilding.building
12、 economics, nthe application of economic analysis to the design, financing, engineering, construction, management,1This terminology is under the jurisdiction of ASTM Committee E06 on Performance of Buildings and is the direct responsibility of Subcommittee E06.81 on BuildingEconomics.Current edition
13、 approved Nov.May 1, 2009.2012. Published March 2010.June 2012. Originally approved in 1981. Last previous edition approved in 2009 as E833 09a.DOI: 10.1520/E0833-09A.10.1520/E0833-12.2For referenced ASTM standards, visit the ASTM website, www.astm.org, or contact ASTM Customer Service at serviceast
14、m.org. For Annual Book of ASTM Standardsvolume information, refer to the standards Document Summary page on the ASTM website.1This 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. Becau
15、seit 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 versionof the standard as published by ASTM is to be considered the official document.Copyright ASTM International, 100 Ba
16、rr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959, United States.operation, ownership, or disposition of buildings.building system, nan aggregation or assemblage of items joined in regular interaction or interdependence in buildings orbuilding construction.capital cost, nthe costs of ac
17、quiring, substantially improving, expanding, changing the functional use of, or replacing a buildingor building system.cash flow, nthe stream of monetary (dollar) valuescosts and benefitsresulting from a project investment.certainty equivalent technique, na technique used to adjust economic measures
18、 of project worth to reflect risk exposure andrisk attitude.DISCUSSIONEstimated project returns are multiplied by a certainty equivalent factor (CEF) to determine the certainty equivalent amount a decisionmaker finds equally acceptable to the estimated project returns.code of accounts, na hierarchic
19、al, company-specific system for cost accounting, control, and management.Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), nalso known as “Superfund,”CERCLA prescribes actions and regulatory requirements for reducing risks to human health and the environment resulting f
20、romreleases or threatened releases of hazardous substances into the environment.condition indexdescriptive or numeric rating used to represent the “condition” of the rated asset as of a stated point in time.DISCUSSIONExamples of condition indices include quantitative scores (scale of 0-100; 0-10; 0-
21、5) based upon statistically sampled data andassociated deficiency curves or defined descriptors (good fair poor).constant dollars, ndollars of uniform purchasing power exclusive of general inflation or deflation.DISCUSSIONConstant dollars are tied to a reference year.construction contingency, nthe f
22、unds added to estimated and known costs in case of cost overruns during construction.construction documents, nmaterials that convey the physical, aesthetic, technical, performance, and administrative require-ments necessary to initiate a contract for construction of the proposed project.contingency,
23、 nin construction design planning and estimating, a sum of money that is provided to cover the occurrence ofunintended departures from the planned scope of work.DISCUSSIONA contingency is used in the absence of precise knowledge, and estimated, to be of ones knowledge, to ensure that a financial buf
24、feris available within a budget. Contingencies assist in mitigating the effects of unplanned events and other risks that are normally not directly controllablewithin a project plan.control signal, nin construction, any series of data points which indicates deviation from the expected job progress in
25、 relationto labor, material, or finance, and indicates anomalies on the jobsite to the contractor, project manager, or job supervisor.DISCUSSIONIn Practice E2691, a control signal identifies any deviation from the labor productivity reference point.cost analysis, nsubdividing the project estimate in
26、to component parts to find and compare their relationship to previouslyestablished historical costs.cost effective, adjthe condition whereby the present value benefits (savings) of an investment exceeds its present value costs.cost limitations, nthe budget boundaries for project elements.cost model,
27、 nthe description of the project divided into discrete elements showing quantities and unit price for each element.cost overruns, nin project design or construction, or both, the unanticipated increase in cost due to factors such as unanticipatedsite conditions, changes in the cost of building mater
28、ials, labor, weather, and labor disputes.cost professional, nin project design or construction, or both, a person engaged in the occupation of understanding, managingor estimating project costs, or a combination thereof.current dollars, ndollars of purchasing power in which actual prices are stated,
29、 including inflation or deflation.DISCUSSIONIn the absence of inflation or deflation, current dollars equal constant dollars.current replacement valueengineering estimate of costs (in todays dollars) required to replace a facility at existing size andfunctional capability using current construction
30、standards.DISCUSSIONIncludes costs for overhead, planning, design, construction, and construction management for the asset being reviewed; does nottypically include land value or initial site clearing or earthwork costs. The current replacement value for a given building may include costs applicable
31、to such site improvements as park benches, walkways, parking, service roads, and site utilities and such should be delineated based upon intended useof the term. Typical engineering estimates include costs for materials, equipment, supplies, and labor.deactivation, nthe process of placing a facility
32、 in a safe and stable condition to minimize the long-term cost of a surveillanceand maintenance program and to protect the workers, the public, and the environment.decision analysis, na technique for making economic decisions in an uncertain environment that allows a decision maker toinclude alterna
33、tive outcomes, risk attitudes, or subjective impressions about uncertain events in an evaluation of investments.decommissioning, ntakes place after deactivation, and includes surveillance and maintenance, decontamination, dismantlement,surveillance and long-term monitoring, or any combination thereo
34、f.E833 122decontamination, nthe removal of hazardous or radioactive material, or both, from facilities, soils, or equipment to precludethe occurrence of foreseeable adverse health effects.design contingency, nin project design/construction, the amount of funds added to the estimated construction cos
35、ts to coverunanticipated construction costs due to the incompleteness of the design, where the contingency is inversely proportional to thelevel of completeness of the design documentation.design development, nthe phase of a project consisting of drawings and document preparation to fix and describe
36、 the size andcharacter of the building systems, material, and elements.design program, nthe information detailing project function, purpose, and characteristics inclusive of floor area, functionalspaces, equipment, and building systems.desires, nthe functions that the value analysis team determines
37、to be fulfilled if cost is not a factor, or functions which do nototherwise violate a constraint.differential price escalation rate, nthe expected percent difference between the rate of increase assumed for a given item ofcost (such as energy), and the general rate of inflation.discounting, na techn
38、ique for converting cash flows that occur over time to equivalent amounts at a common time.discount rate, nthe rate of interest reflecting the investors time value of money, used to determine discount factors forconverting benefits and costs occurring at different times to a base time.DISCUSSIONThe
39、discount rate may be expressed as nominal or real.discount factor, na multiplicative number (calculated from a discount formula for a given discount rate and interest period) thatis used to convert costs and benefits occurring at different times to a common time.discounted payback (DPB) period, nthe
40、 time required for the cumulative benefits from an investment to pay back theinvestment cost and other accrued costs considering the time value of money.economic evaluation methods, na set of economic analysis techniques that consider all relevant costs associated with a projectinvestment during its
41、 study period, comprising such techniques as life-cycle cost, benefit-to-cost ratio, savings-to-investmentratio, internal rate of return, and net savings.economic life, nthat period of time over which an investment is considered to be the least-cost alternative for meeting aparticular objective.elem
42、ent, nin construction planning, design, specification, estimating, and cost analysis, is a significant component part of thewhole that performs a specific function, or functions, regardless of design, specification, or construction.DISCUSSIONWhile through analysis, or by direct application, construc
43、tion estimates categorized into elements (functional elements) with allocatedcosts, may be summarized in an elemental cost summary or elemental cost analysis; elements (functional elements) also provide a framework forconsistent preliminary description, outline, and performance specification, though
44、 all stages of planning, design, construction, and maintenance.elemental cost analysis, nin construction planning, design, specification, estimating, and cost analysis, is a tabulation of costcategorized by group element, element,orsub-element, or any combination thereof, to which a parameter quanti
45、ty,orparameter quantities, has, or have, been applied to derive benchmark figures (rates, ratios, percentages, and so forth).DISCUSSIONElemental cost analyses are valuable tools in planning, estimating, and controlling construction cost through all stages of planning anddesign. The benchmark figures
46、 are primarily derived from underlying estimate detail but can, in some circumstances, be used directly to approximateestimates for other projects.elemental cost summary, nin construction planning, design, specification, estimating, and cost analysis, is a tabulation of costcategorized by group elem
47、ent, element,orsub-element.engineering economics, nthe application of economic techniques to the evaluation of design and engineering alternatives.equivalent uniform annual value, nSee annual value.ex situ treatment, ntreatment, remediation, or cleanup of contaminated material in a treatment facilit
48、y at a different locationfrom the contaminated site.field requirements, nin construction design planning and estimating, the nonpermanent portion of construction cost that isessential to permit implementation of the construction work in the field.DISCUSSIONUsually relating to permits, insurances, su
49、pervision, site set-up, and other requirements that permit the construction process, butexcluding such temporary construction work as formwork, bracing, shoring, and other work required to install the permanent construction work.financial management rate-of-return (FMRR), nSee adjusted internal rate-of-return (AIRR).first cost, ncosts incurred in placing a building or building subsystem into service, including, but not limited to, costs ofplanning, design, engineering, site acquisition and preparation
