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ASTM E1074-06e2

Historical Revision

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

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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.


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.

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.

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.

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

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

SDO ASTM: ASTM International
Document Number E1074
Publication Date April 1, 2006
Language en - English
Page Count 5
Revision Level 06e2
Supercedes
Committee E06.81
Publish Date Document Id Type View
April 1, 2020 E1074-15R20E01 Revision
May 1, 2015 E1074-15 Revision
April 1, 2009 E1074-09 Revision
April 1, 2006 E1074-06E02 Revision
April 1, 2006 E1074-06E01 Revision
April 1, 2006 E1074-06 Revision
April 1, 2004 E1074-04 Revision
Jan. 1, 1998 E1074-93R98E01 Revision