1、Designation: E 917 051Standard Practice forMeasuring Life-Cycle Costs of Buildings and BuildingSystems1This standard is issued under the fixed designation E 917; the number immediately following the designation indicates the year oforiginal adoption or, in the case of revision, the year of last revi
2、sion. A number in parentheses indicates the year of last reapproval. Asuperscript epsilon () indicates an editorial change since the last revision or reapproval.1NOTESection 2.2 and Footnote 4 were editorially corrected in January 2009.INTRODUCTIONSeveral methods of economic evaluation are available
3、 to measure the economic performance of abuilding or building system over a specified time period. These methods include, but are not limitedto, life-cycle cost (LCC) analysis, the benefit-to-cost ratio, internal rate of return, net benefits,payback, multiattribute decision analysis, risk analysis,
4、and related measures (see Practices E 964,E 1057, E 1074, E 1121, E 1765, and E 1946). These methods differ in their measure and, to someextent, in their applicability to particular types of problems. Guide E 1185 directs you to theappropriate method for a particular economic problem. One of these m
5、ethods, life-cycle cost (LCC)analysis, is the subject of this practice. The LCC method sums, in either present-value or annual-valueterms, all relevant costs associated with a building or building system over a specified time period.Alternative (mutually exclusive) designs or systems for a given fun
6、ctional requirement can becompared on the basis of their LCCs to determine which is the least-cost means of satisfying thatrequirement over a specified study period.1. Scope1.1 This practice establishes a procedure for evaluating thelife-cycle cost (LCC) of a building or building system andcomparing
7、 the LCCs of alternative building designs or systemsthat satisfy the same functional requirements.1.2 The LCC method measures, in present-value or annual-value terms, the sum of all relevant costs associated withowning and operating a building or building system over aspecified time period.1.3 The b
8、asic premise of the LCC method is that to aninvestor or decision maker all costs arising from an investmentdecision are potentially important to that decision, includingfuture as well as present costs.Applied to buildings or buildingsystems, the LCC encompasses all relevant costs over adesignated st
9、udy period, including the costs of designing,purchasing/leasing, constructing/installing, operating, main-taining, repairing, replacing, and disposing of a particularbuilding design or system.2. Referenced Documents2.1 ASTM Standards:2E 631 Terminology of Building ConstructionsE 833 Terminology of B
10、uilding EconomicsE 964 Practice for Measuring Benefit-to-Cost and Savings-to-Investment Ratios for Buildings and Building SystemsE 1057 Practice for Measuring Internal Rate of Return andAdjusted Internal Rate of Return for Investments in Build-ings and Building SystemsE 1074 Practice for Measuring N
11、et Benefits and Net Sav-ings for Investments in Buildings and Building SystemsE 1121 Practice for Measuring Payback for Investments inBuildings and Building SystemsE 1185 Guide for Selecting Economic Methods for Evalu-ating Investments in Buildings and Building SystemsE 1369 Guide for Selecting Tech
12、niques for Treating Uncer-tainty and Risk in the Economic Evaluation of Buildingsand Building Systems1This practice is under the jurisdiction of ASTM Committee E06 on Perfor-mance of Buildings and is the direct responsibility of Subcommittee E06.81 onBuilding Economics.Current edition approved Oct.
13、1, 2005. Published November 2005. Originallyapproved in 1983. Last previous edition approved in 2002 as E 917 02.2For 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
14、 standards Document Summary page onthe ASTM website.1Copyright ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959, United States.E 1765 Practice for Applying Analytical Hierarchy Process(AHP) to Multiattribute Decision Analysis of InvestmentsRelated to Buildings
15、 and Building SystemsE 1946 Practice for Measuring Cost Risk of Buildings andBuilding SystemsE 2204 Guide for Summarizing the Economic Impacts ofBuilding-Related Projects2.2 Adjuncts:Discount Factor Tables Adjunct to Practices E 917, E 964,E 1057, E 1074, and E 112133. Terminology3.1 DefinitionsFor
16、definitions of terms used in the prac-tice, refer to Terminologies E 631 and E 833.4. Summary of Practice4.1 This practice outlines the recommended procedures forcomputing the LCCs associated with a building or buildingsystem over a specified time period. It identifies and givesexamples of objective
17、s, alternatives, and constraints for anLCC analysis; identifies project data and general assumptionsneeded for the analysis; and presents alternative approaches forcomputing LCCs. This practice requires that the LCCs ofalternative building designs or systems be compared over acommon time period to d
18、etermine which design or system hasthe lowest LCC. This practice also states that uncertainty,unquantifiable effects, and funding constraints shall be consid-ered in the final analysis. It identifies the recommendedcontents of an LCC report, describes proper applications of theLCC method, provides e
19、xamples of its use, and identifieslimitations of the method. A comprehensive example of theLCC method applied to a building economics problem isprovided in Appendix X1.5. Significance and Use5.1 LCC analysis is an economic method for evaluating aproject or project alternatives over a designated stud
20、y period.The method entails computing the LCC for alternative buildingdesigns or system specifications having the same purpose andthen comparing them to determine which has the lowest LCCover the study period.5.2 The LCC method is particularly suitable for determiningwhether the higher initial cost
21、of a building or building systemis economically justified by reductions in future costs (forexample, operating, maintenance, repair, or replacement costs)when compared with an alternative that has a lower initial costbut higher future costs. If a building design or system specifi-cation has both a l
22、ower initial cost and lower future costsrelative to an alternative, an LCC analysis is not needed toshow that the former is the economically preferable choice.5.3 If an investment project is not essential to the buildingoperation (for example, replacement of existing single-panewindows with new doub
23、le-pane windows), the project must becompared against the “do nothing” alternative (that is, keepingthe single pane windows) in order to determine if it is costeffective. Typically the “do nothing” alternative entails noinitial investment cost but has higher future costs than theproposed project.6.
24、Procedure6.1 Follow these steps in calculating the LCC for a buildingor building system:6.1.1 Identify objectives, alternatives, and constraints (seeSection 7).6.1.2 Establish basic assumptions for the analysis (see 8.1).6.1.3 Compile cost data (see 8.2).6.1.4 Compute the LCC for each alternative (s
25、ee Section 9).6.1.5 Compare LCCs of each alternative to determine theone with the minimum LCC (see 10.1).6.1.6 Make final decision, based on LCC results as well asconsideration of risk and uncertainty, unquantifiable effects,and funding constraints (if any) (see 10.2, 10.3, 10.4, and 10.5).7. Object
26、ives, Alternatives, and Constraints7.1 Specify the design or system objective that is to beaccomplished, identify alternative designs or systems thataccomplish that objective, and identify any constraints thatlimit the available options to be considered.7.2 An example is the selection of a space hea
27、ting systemfor a new house. The system must satisfy the thermal comfortrequirements of the occupants throughout the heating season.Available alternatives (for example, various gas furnaces, oilfurnaces, heat pumps, and electric baseboard heaters) may havedifferent types of fuel usage with different
28、unit costs, differentfuel conversion efficiencies, different initial costs and expectedmaintenance and repair costs, and different lives. Systemselection will be constrained to those fuel types available at thebuilding site.8. Data and Assumptions8.1 Basic AssumptionsEstablish the uniform assumption
29、sto be made in the economic analysis of all alternatives. Theseassumptions usually include, but are not limited to, theconsistent use of the present-value or annual-value calculationmethod, the base time and study period, the general inflationrate, the discount rate, the marginal income tax rate (wh
30、ererelevant), the comprehensiveness of the analysis, and theoperational profile of the building or system to be evaluated.8.1.1 Present-Value Versus Annual-Value CalculationsThe LCCs of project alternatives must be calculated uniformlyin present-value or annual-value terms. In the former, all costsa
31、re discounted to the base time; in the latter, all costs areconverted to a uniform annual amount equivalent to the presentvalue when discounted to the base time.8.1.2 Study PeriodThe study period appropriate to theLCC analysis may or may not reflect the life of the building orsystem to be evaluated.
32、 The same study period must be used foreach alternative when present-value calculations are used. Anannual-value LCC may, under certain restrictive assumptions,be used to compare alternatives with different study periods(see 9.2.3). The following guidelines may be useful forselecting a study period
33、for an LCC analysis:8.1.2.1 When analyzing a project from an individual inves-tors standpoint, the study period should reflect the investors3Available from ASTM International Headquarters. Order Adjunct No.ADJE091703.E9170512time horizon. For a homeowner, the study period for ahouse-related investme
34、nt might be based on the length of timethe homeowner expects to reside in the house. For a commer-cial property owner, the study period might be based on theanticipated holding period of the building. For an owner/occupant of a commercial building, the study period mightcorrespond to the life of the
35、 building or building system beingevaluated. For a speculative investor, the study period might bebased on a relatively short holding period. For investments bygovernment agencies and large institutions, specific internalpolicies often direct the choice of study period.8.1.2.2 When LCC analyses of a
36、lternative building systemsor design practices are performed for general informationrather than for a specific application (for example, governmentor industry research to determine the cost effectiveness ofthermal insulation or high-efficiency heating and coolingequipment in typical installations),
37、the study period will oftencoincide with the service life of the material or system (but belimited to the typical life of the type of building where it is tobe installed). When the service life is very long, a moreconservative choice for the study period might be used if theuncertainty associated wi
38、th the long-term forecasting of costssubstantially reduces the credibility of the results.8.1.2.3 Regardless of the type of investor or purpose of theanalysis, use the same study period for all categories of costswhen calculating the present value of any cost associated witha project. Furthermore, w
39、hen comparing alternative designs orsystems on the basis of their present-value LCCs, use the samestudy period for each investment alternative.8.1.2.4 When the study period selected is significantlyshorter than the service life of the building or system evaluated,it is important that a realistic ass
40、essment of the projects resale(or residual) value at the end of the study period be included inthe LCC analysis. Even if the building will not be sold at thattime, the resale value will likely have a significant impact onthe LCC.8.1.3 InflationGeneral price inflation is the reduction inthe purchasin
41、g power of the dollar from year to year, asmeasured, for example, by the percent increase in the grossnational product (GNP) deflator over a given year. LCCanalyses can be calculated in constant-dollar terms (net ofgeneral inflation) or in current-dollar terms (including generalinflation). If the la
42、tter is used, a consistent projection of generalprice inflation must be used throughout the LCC analysis,including adjustment of the discount rate to incorporate thegeneral inflation rate.8.1.3.1 When income tax effects are not included in theLCC analysis, as in the case of LCC evaluations of nonpro
43、fitbuildings and owner-occupied houses (without financing), it isusually easier to express all costs in constant dollars. Pricechanges for individual cost categories that are higher or lowerthan the rate of general inflation can be included by usingdifferential rates of price change for those catego
44、ries.8.1.3.2 When income tax effects are included in the LCCanalysis, it is usually easier to express all costs in currentdollars because income taxes are tied to current-dollar cashflows rather than constant-dollar cash flows.8.1.4 Discount RateThe discount rate selected shouldreflect the investors
45、 time value of money. That is, the discountrate should reflect the rate of interest that makes the investorindifferent between paying or receiving a dollar now or at somefuture point in time. The discount rate is used to convert costsoccurring at different times to equivalent costs at a commonpoint
46、in time.8.1.4.1 Select a discount rate equal to the rate of return onthe next best available use of funds. Where the discount rate islegislated or mandated for a given institution, that rate takesprecedence.8.1.4.2 A discount rate that includes general price inflationover the study period is referre
47、d to as the “nominal” discountrate in this practice. A discount rate expressed in terms net ofgeneral price inflation is referred to as the “real” discount rate.8.1.4.3 Anominal discount rate, i, and its corresponding realdiscount rate, r, are related as follows:r 51 1 i1 1 I2 1ori 5 1 1 r!1 1 I! 2
48、1 (1)where:I = the rate of general price inflation.8.1.4.4 Use a real discount rate if estimates of future costsare expressed in constant dollars, that is, if they do not includegeneral inflation.8.1.4.5 Use a nominal discount rate if estimates of futurecosts are expressed in current dollars, that i
49、s, if they includegeneral inflation.8.1.4.6 When alternative building or system designs arecompared using the LCC method, use the same discount rate ineach LCC computation.8.1.5 ComprehensivenessDifferent levels of effort can beapplied in undertaking an LCC analysis. The appropriate levelof comprehensiveness depends upon the degree of complexityof the problem, the intended purpose of the evaluation, thelevel of monetary and nonmonetary impacts contingent uponthe investment decision, the cost of the different levels ofcomprehensiveness, and the resources available to
