1、Designation: E833 13bE833 14Standard 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 indi
2、cates 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 on Performanc
3、e of Buildings, and it does not necessarily correspond to the terminology used in otherareas of accounting and economics.2. Referenced Documents2.1 ASTM Standards:2E1699 Practice for Performing Value Engineering (VE)/Value Analysis (VA) of Projects, Products and ProcessesE2691 Practice for Job Produ
4、ctivity Measurement3. Terminologyadjusted internal rate-of-return (AIRR), nthe compound rate of 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 ra
5、te (syn. financial management rate of return (FMRR).allowance, nin construction design planning 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 ens
6、ure a full and complete estimate.Allowancescover events and activities that are normally directly 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
7、worth, equivalent uniform annual value).annual worth, nSee annual value.annually recurring costs, 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 whe
8、n a present value method is used (usuallythe beginning of the study period) (syn. base date).baseline 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.DISCUSSION1 Thi
9、s 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 approved Nov. 1, 2013April 1, 2014. Published November 2013May 2014. Originally approved in 1981. Last previous editi
10、on approved in 2013 asE833 13a.E833 13b. DOI: 10.1520/E0833-13B.10.1520/E0833-14.2 For referencedASTM standards, visit theASTM website, www.astm.org, or contactASTM Customer Service at serviceastm.org. For Annual Book of ASTM Standardsvolume information, refer to the standards Document Summary page
11、on the ASTM website.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. Becauseit may not be technically possible to adequately depict all changes accurately, ASTM recommends that use
12、rs 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 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959. United States1The budgeted hours are first
13、 assigned to the tasks on the project, and can be summed to determine budgeted hours for any cost code or for the entireproject.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 a
14、ctivities are measured, assessed, and controlled.benefit-cost analysis, 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, w
15、here both are discounted to a present value or equivalent uniformannual 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, e
16、ngineering, construction, management, or operation of abuilding.building economics, nthe application of economic analysis to the design, financing, engineering, construction, management,operation, ownership, or disposition of buildings.building system, nan aggregation or assemblage of items joined i
17、n regular interaction or interdependence in buildings orbuilding construction.capital cost, nthe costs of acquiring, substantially improving, expanding, changing the functional use of, or replacing a buildingor building system.cash flow, nthe stream of monetary (dollar) valuescosts and benefitsresul
18、ting from a project investment.certainty equivalent technique, na technique used to adjust economic measures 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 amou
19、nt a decision maker findsequally acceptable to the estimated project returns.code of accounts, na hierarchical, company-specific system for cost accounting, control, and management.Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), nalso known as “Superfund,”CERCLAprescr
20、ibes actions and regulatory requirements for reducing risks to human health and the environment resulting fromreleases 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
21、point in time.DISCUSSIONExamples of condition indices include quantitative scores (scale of 0-100; 0-10; 0-5) based upon statistically sampled data and associated deficiencycurves or defined descriptors (good fair poor).constant dollars, ndollars of uniform purchasing power exclusive of general infl
22、ation or deflation.DISCUSSIONConstant dollars are tied to a reference year.construction contingency, nthe funds added to estimated and known costs in case of cost overruns during construction.construction documents, nmaterials that convey the physical, aesthetic, technical, performance, and administ
23、rative require-ments necessary to initiate a contract for construction of the proposed project.contingency, 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.DISCUSSIONE833 142Acontingency i
24、s used in the absence of precise knowledge, and estimated, to be of ones knowledge, to ensure that a financial buffer is available withina budget. Contingencies assist in mitigating the effects of unplanned events and other risks that are normally not directly controllable within a projectplan.contr
25、ol signal, nin construction, any series of data points which indicates deviation from the expected job progress in 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 identi
26、fies any deviation from the labor productivity reference point.cost analysis, nsubdividing the project estimate into component parts to find and compare their relationship to previouslyestablished historical costs.cost effective, adjthe condition whereby the present value benefits (savings) of an in
27、vestment exceeds its present value costs.cost limitations, nthe budget boundaries for project elements.cost model, 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 unantic
28、ipated increase in cost due to factors such as unanticipatedsite conditions, changes in the cost of building materials, labor, weather, and labor disputes.cost professional, nin project design or construction, or both, a person engaged in the occupation of understanding, managingor estimating projec
29、t costs, or a combination thereof.current dollars, ndollars of purchasing power in which actual prices are stated, including inflation or deflation.DISCUSSIONIn the absence of inflation or deflation, current dollars equal constant dollars.current replacement valueengineering estimate of costs (in to
30、days dollars) required to replace a facility at existing size andfunctional capability using current construction standards.DISCUSSIONIncludes costs for overhead, planning, design, construction, and construction management for the asset being reviewed; does not typically include landvalue or initial
31、 site clearing or earthwork costs. The current replacement value for a given building may include costs applicable to such siteimprovements as park benches, walkways, parking, service roads, and site utilities and such should be delineated based upon intended use of the term.Typical engineering esti
32、mates include costs for materials, equipment, supplies, and labor.deactivation, nthe process of placing a facility 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
33、technique for making economic decisions in an uncertain environment that allows a decision maker toinclude alternative outcomes, risk attitudes, or subjective impressions about uncertain events in an evaluation of investments.decommissioning, ntakes place after deactivation, and includes surveillanc
34、e and maintenance, decontamination, dismantlement,surveillance and long-term monitoring, or any combination thereof.decontamination, nthe removal of hazardous or radioactive material, or both, from facilities, soils, or equipment to preclude theoccurrence of foreseeable adverse health effects.design
35、 contingency, nin project design/construction, the amount of funds added to the estimated construction costs 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.desig
36、n development, nthe phase of a project consisting of drawings and document preparation to fix and describe the size andcharacter of the building systems, material, and elements.design program, nthe information detailing project function, purpose, and characteristics inclusive of floor area, function
37、alspaces, equipment, and building systems.desires, nthe functions that the value analysis team determines 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
38、 assumed for a given item of cost(such as energy), and the general rate of inflation.E833 143discount 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
39、 time.discounting, na technique 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
40、 a base time.DISCUSSIONThe discount rate may be expressed as nominal or real.economic evaluation methods, na set of economic analysis techniques that consider all relevant costs associated with a projectinvestment during its study period, comprising such techniques as life-cycle cost, benefit-to-cos
41、t 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 a particularobjective.element, nin construction planning, design, specification, estimating, and cost
42、analysis, a significant component part of thewhole that performs a specific function, or functions, regardless of design, specification, or construction method.DISCUSSIONWhile through analysis, or by direct application, construction estimates categorized into elements (functional elements) with allo
43、cated costs, may besummarized in an elemental cost summary or elemental cost analysis; elements (functional elements) also provide a framework for consistentpreliminary project description, outline, and performance specification, through all stages of planning, design, construction, and maintenance.
44、elemental cost analysis, nin construction planning, design, specification, estimating, and cost analysis, a tabulation of costcategorized by major group element,group element, or element, or any combination thereof, to which a parameter quantity,or parameter quantities, has, or have, been applied to
45、 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 and design. Thebenchmark figures are primarily derived from underlying estimate detail b
46、ut can, in some circumstances, be used directly to approximate estimatesfor other projects.elemental cost summary, nin construction planning, design, specification, estimating, and cost analysis, a tabulation of costcategorized by major group element,group element, or element.engineering economics,
47、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 facility at a different locationfrom the contaminated sit
48、e.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, supervision, site set-up, and other requirements tha
49、t permit the construction process, but excluding suchtemporary 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, construction, purchase, installation, proper
