ASTM E1074 - 15(2020)e1

    Standard Practice for Measuring Net Benefits and Net Savings for Investments in Buildings and Building Systems

    Active Standard ASTM E1074 | Developed by Subcommittee: E06.81

    Book of Standards Volume: 04.11


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    Significance and Use

    5.1 The NB (NS) method provides a measure of the economic performance of an investment, taking into account all relevant monetary values associated with that investment over the investor’s study period. The NB (NS) measure can be expressed in either present value or equivalent annual value terms, taking into account the time value of money.

    5.2 The NB (NS) method is used to decide if a given project is cost effective and which size or design for a given purpose is most cost effective when no budget constraint exists.

    5.3 The NB (NS) method can also be used to determine the most cost effective combination of projects for a limited budget; that is, the combination of projects having the greatest aggregate NB (NS) and fitting within the budget constraint.

    5.4 Use the NB method when the focus is on the benefits rather than project costs.

    5.5 Use the NS method when the focus in on project savings (that is, reductions in project costs).

    1. Scope

    1.1 This practice covers a recommended procedure for calculating and interpreting the net benefits (NB) and net savings (NS) methods in the evaluation of building designs and systems.

    1.2 The values stated in inch-pound units are to be regarded as standard. The values given in parentheses are mathematical conversions to SI units that are provided for information only and are not considered standard.

    1.3 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility of the user of this standard to establish appropriate safety, health, and environmental practices and determine the applicability of regulatory limitations prior to use.

    1.4 This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.


    2. Referenced Documents (purchase separately) The documents listed below are referenced within the subject standard but are not provided as part of the standard.

    ASTM Standards

    E631 Terminology of Building Constructions

    E833 Terminology of Building Economics

    E917 Practice for Measuring Life-Cycle Costs of Buildings and Building Systems

    E964 Practice for Measuring Benefit-to-Cost and Savings-to-Investment Ratios for Buildings and Building Systems

    E1057 Practice for Measuring Internal Rate of Return and Adjusted Internal Rate of Return for Investments in Buildings and Building Systems

    E1121 Practice for Measuring Payback for Investments in Buildings and Building Systems

    E1185 Guide for Selecting Economic Methods for Evaluating Investments in Buildings and Building Systems

    E1369 Guide for Selecting Techniques for Treating Uncertainty and Risk in the Economic Evaluation of Buildings and Building Systems

    E1765 Practice for Applying Analytical Hierarchy Process (AHP) to Multiattribute Decision Analysis of Investments Related to Projects, Products, and Processes

    E1946 Practice for Measuring Cost Risk of Buildings and Building Systems and Other Constructed Projects

    E2204 Guide for Summarizing the Economic Impacts of Building-Related Projects


    ICS Code

    ICS Number Code 91.010.20 (Contractual aspects)

    UNSPSC Code

    UNSPSC Code 81120000(Economics)


    Referencing This Standard
    Link Here
    Link to Active (This link will always route to the current Active version of the standard.)

    DOI: 10.1520/E1074-15R20E01

    Citation Format

    ASTM E1074-15(2020)e1, Standard Practice for Measuring Net Benefits and Net Savings for Investments in Buildings and Building Systems, ASTM International, West Conshohocken, PA, 2020, www.astm.org

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